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Bond yields tread water ahead of results of Rs 12,000 crore debt sale

28 Aug 2014 Evaluate

Bond yields were treading water ahead of the results of Rs 12,000 debt sale later this day, which marks the start of long weekend. However, improved liquidity condition and lower brent crude prices could weigh on yields in the later part of the session.

On the global front, U.S. Treasuries rallied on Wednesday as European government bond yields continued to plumb record lows and month-end buying helped send 30-year Treasury yields to their lowest levels in over a year. Meanwhile, Brent crude dipped on Thursday, but still held between $102 and $103 a barrel, as expectations of ample supply weighed on prices.

Back home, the yields on new benchmark 8.40%- 2024 bonds were trading steady at Wednesday’s close of 8.56%.

The benchmark five-year interest rate swaps were trading steady at Wednesday’s close of 8.03%.

The Government of India announce the sale of Four dated securities for Rs 12,000 crore on August 28, 2014, including (i) 8.27% Government Stock 2020 for a notified amount of Rs 2000 crore, (ii) 8.40% Government Stock 2024 for a notified amount of Rs 6000 crore, (iii) 8.32% Government Stock 2032 for a notified amount of Rs 2000 crore and lastly (iv) 9.23% Government Stock 2043 for a notified amount of Rs 2000 crore.

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